European long-term investment funds consultation

What? The European Commission launched a public consultation on EU rules for long-term investment funds (ELTIF).

When? Consultation launched on 19 October 2020; runs until 19 January 2021.

Why? The European long-term investment fund regulation sets out an EU-wide investment regime designed to attract investors who want to put their money towards long-term investments in companies and projects. These funds aim to boost the finance available to companies looking for long-term capital for different projects in diverse areas, such as energy, transport, social housing, schools and hospitals. Although it has been several years since the ELTIF regulation was adopted in 2015, there are only approximately 28 ELTIFs in the EU, while a number of Member States have no domestic ELTIFs at all. The consultation will feed into a review of the legislation, with the aim of boosting growth in Europe by enhancing the attractiveness of ELTIFs for long-term investment projects and increasing the amount of non-bank funding available to companies investing in the real economy.

Want to know more? Read about long-term investment funds, which are in important part of the capital markets union – and take part in the consultation